Fibra Uno Announces Income of Ps. 198 million in 1Q12

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1 Fibra Uno Announces Income of Ps. 198 million in 1Q12 Mexico City, Mexico, April 26, Fibra Uno (BMV: FUNO11) ( Fibra Uno or Trust F/1401 ), Mexico s first real estate investment trust, announced today its unaudited results for the first quarter of All figures included herein were prepared in accordance with IFRS and are stated in nominal Mexican pesos, unless otherwise noted. 1Q12 Highlights Revenues for 1Q12 were Ps million Rental revenue for 1Q12 totaled Ps million NOI 1 in 1Q12 was Ps million Net income for 1Q12 was Ps million FFO 2 for 1Q12 was Ps. 56 million Net Income per CBFI was Ps cents for 1Q12 As of March 31, 2012, the book value of Fibra Uno s portfolio of properties was Ps billion. 1 Net operating income is calculated by subtracting operation expenses from revenue. 2 FFO is calculated by adding depreciation and amortization expenses to net income. 3 Calculated based on the number of CBFIs in circulation as of March 31, 2012 (796,325,223). CEO Comments The first quarter of 2012 closes the first full year of operations for Fibra Uno since its IPO on March 18, The quarterly results once again, and for four consecutive quarters, were strong and showed the success of our business model along with the dynamism of Mexico s real estate market. As a result, we launched during the quarter 1

2 the follow on offer on March 22. We raised Ps. 8,876,562,500 (approximately US$ million), including the Ps. 1,157,812,500 (approximately US$ 89 million) corresponding to the overallotment option, at a price of Ps per CBFI. The global offer will allow FUNO stock to trade with higher volume, as we have allocated 56% to domestic investors and 44% to international investors. The proceeds of the offer will be used to acquire new properties following our business model and continue to grow our real estate portfolio, offering shareholders solid returns and a distribution of at least 95% of the net taxable income annually. Our portfolio today has 41 properties, including the 23 MexFund acquired properties, and an additional property in Tlalnepantla Mexico, which will start contributing to our results as of April 1, As a result the full impact of our acquisitions will start to be reflected in our second quarter 2012 results. Our NOI for the first quarter of the year was Ps million, while FFO was Ps. 56 million. As it has done in the past quarters, Fibra Uno will return this value to CBFI holders via a distribution payment of Ps cents per CBFI, scheduled to be paid no later than May 9, This payment corresponds to our performance in the quarter ended March 31, 2012, and follows four other distributions corresponding to 2011 results. For 2012, we expect to continue delivering solid financial results and continue distributing value to CBFI holders as we have done during our first year of operations. With a solid balance sheet and well-identified opportunities we will grow Fibra Uno further following our successful business model, while seizing the opportunities offer by the real estate market in Mexico. André El-Mann, Chief Executive Officer, Fibra Uno 2

3 Property Portfolio Portfolio at end of 1Q12 On March 31, 2012, Fibra Uno had a portfolio of 18 prime properties, located in central and southern Mexico. These properties encompass office, retail, industrial, and mixeduse units. Fibra Uno s business model focuses on having a diversified property portfolio in different geographic locations, where there is strong economic activity. Fibra Uno will seek to continue developing its portfolio with a mix of properties, while scouting for new investment opportunities across Mexico. On March 26, Fibra Uno acquired an industrial property in Tlalnepantla, Estado de Mexico, with a land area of 155,201 square meters, with a GLA of 39, square meters. The property is intended to be a mixed use property, with a commercial area that has to be redeveloped, since the current constructions are old buildings. As announced last January, Fibra Uno has completed by now the due diligence process for the acquisition of 23 properties from MexFund. The properties will become part of the portfolio as of April 1 st, contributing to the income of the Fibra. The GLA presented in the tables below exclude the contribution of the new portfolio acquired by the Trust. Gross Leasable Area (GLA) at end of 1Q12 As of March 31, 2012, Fibra Uno s total GLA under management was approximately 746,094 square meters. The breakdown of the GLA by property type is below. SECTOR GLA % of TOTAL GLA Industrial 329, % Retail 176, % Office 14, % Mixed Use 226, % Total 746, % GLA by Property Type 2% 30% 44% 24% Industrial Retail Mixed-Use Office 3

4 Book Value at end of 1Q12 These 18 properties had a book value of Ps billion as of March 31, Occupancy Levels The table below shows the location and occupancy rates of each of the properties in our portfolio by property type. Properties Region First Year of % of Total % Occupancy Occupancy Occupancy Rate GLA m2 Operations GLA Rate Mar 2012 Rate Mar 2011 Dec 2011 Industrial 1 Guadalajara Tlaquepaque, Jalisco , % 97% 89% 99% 2 Diamante Cuautitlan Izcalli, Edo. Mexico , % 100% 100% 100% 3 La Joya Cuautitlan, Edo. Mexico , % 100% 100% 100% 4 Maravillas Toluca, Edo. Mexico , % 100% 91% 100% 5 Tlalnepantla Tlalnepantla, Edo. Mexico , % 100% N/A N/A Subtotal 329, % Retail 6 Celaya Celaya, Guanajuato , % 99% 99% 99% 7 Taxco Taxco, Guerrero , % 62% 61% 62% 8 Tuxtla Tuxtla Gutierrez, Chiapas , % 94% 96% 94% 9 Tuxtla II Tuxtla Gutierrez, Chiapas , % 100% 100% 100% 10 Chetumal Othon P Blanco, Q. Roo , % 98% 97% 98% 11 Plaza Central Iztapalapa, D.F , % 97% 97% 97% 12 Toluca Toluca, Edo. Mexico , % 100% N/A 100% Subtotal 176, % Office 13 Reforma Cuauhtemoc, D.F , % 100% 100% 100% Subtotal 14, % Mixed Use 14 Via Morelos Ecatepec, Edo. Mexico , % 84% 99% 84% 15 Lerma Lerma, Edo. Mexico , % 100% 97% 94% 16 Rentimex Benito Juarez, D.F , % 100% 100% 100% 17 Vallejo 2000 Gustavo A. Madero, D.F , % 98% 99% 100% 18 Malecon Benito Juarez, Q. Roo , % 72% 64% 54% Subtotal 226,122 30% Total 746, % 94.5% 93.1% 93.0% The occupancy rate for Fibra Uno s 18-property portfolio as of March 31, 2012 was 94.6% compared to 93% at the end of 2011, demonstrating the strong demand for rental space in Fibra Uno s properties. 4

5 The average occupancy rate in our portfolio of retail properties was 93% at the end of the first quarter of 2012, compared with 93% at the end of 1Q11. The average occupancy rate in our industrial properties was 99% at the end of the first quarter of 2012, compared with 99% at the end of 1Q11. The average occupancy rate in our mixed-use properties was 91%, at the end of the first quarter of 2012, compared with 86% at the end of 1Q11. The average occupancy rate in our office property was 100%, at the end of the first quarter of 2012, compared with 100% at the end of 1Q11. Fibra Uno s Portfolio Properties by Location Fibra Uno acquires buildings in regions of Mexico with a strong economic performance, real estate market and potential for growth. These factors are all crucial for the performance of properties and their capacity to deliver returns to CBFI holders in the long-term. The table below shows the breakdown of our property portfolio by location, it excludes the recently acquired 23 properties from MexFund as the properties will be incorporated to the Trust as of April 1 st, Region Number of Properties Percentage of Portfolio GLA Retail Properties as Percentage of GLA Industrial Properties as a Percentage of GLA Office Properties as a Percentage of GLA Mixed Use Properties as a Percentage of GLA Annualized Base Rent (Ps. In 000s) Percentage of Total Annualized CHIAPAS 2 4% 100% $ 51,329 7% GUANAJUATO 1 3% 100% $ 45,159 6% Base Rent JALISCO 1 19% 100% $ 91,512 13% MEXICO STATE 7 45% 5% 57% 39% $ 183,144 25% MEXICO CITY 4 12% 65% 16% 19% $ 168,537 23% GUERRERO 1 2% 100% $ 12,498 2% QUINTANA ROO 2 16% 32% 68% $ 173,963 24% % $ 726, % (1) Annualized base rent is the fixed monthly rent to Mar. 31, 2012 multiplied by 12 5

6 Tenants and lease contracts The table shown below includes relevant information on the number and average term of lease contracts. Properties No of Contracts Average Initial Term (yrs) Average Remaining Term (yrs) Industrial 1 Guadalajara Diamante La Joya Maravillas Tlalnepantla Subtotal 38 Commercial 6 Celaya Taxco Tuxtla Tuxtla II Chetumal Plaza Central Toluca Subtotal 511 Office 13 Reforma Subtotal 1 Mixed Use 14 Via Morelos Lerma Rentimex Vallejo Malecon Subtotal 201 Total 751 6

7 Less than 2% of the lease contracts of Fibra Uno are in the process of renewing or will expire within the next 6 months. 1Q12 Rental Revenue Fibra Uno s rental revenue based on the 18-property portfolio for 1Q12 was Ps million. The rental revenue breakdown corresponds to: In 1Q12, revenue from our industrial portfolio totaled Ps million, or 23.8% of the total. In 1Q12, revenue from our retail portfolio totaled Ps million, or 42.48% of the total. In 1Q12, revenue from our office portfolio totaled Ps million, or 3.81% of the total. In 1Q12, revenue from our mixed-use portfolio totaled Ps million, or 29.91% of the total. 1Q12 Rental Revenue (Ps. % of Rental SECTOR million) Revenue Industrial % Rental Revenue by Property Type Mixed-use 30% Industrial 24% Retail % Office % Mixed Use % Total % Office 4% Retail 42% 7

8 Revenue from Financial Products Fibra Uno recorded revenue from financial products of Ps. 5.3 million in the first quarter of This revenue is income from investment in low risk fixed-income products, mostly Mexican government securities. 1Q12 Net Operating Income (NOI) Fibra Uno s NOI for 1Q12 was Ps million. Pro Forma Comparisons 1Q12 vs. 1Q11 It is worth noting that Fibra Uno s Initial Portfolio was formed with 16 properties. Fibra Uno has since then acquired two new properties, Toluca and Tlalnepantla, and is in the process of incorporating to its portfolio the 23 properties it acquired from the MexFund as announced last January. To allow for comparisons, we prepared pro-forma income statements for 1Q12 and 1Q11. The following table shows pro forma results for Fibra Uno s portfolio for 1Q12 and 1Q11. 8

9 Fibra Uno Condensed Pro Forma Statement for 1Q12 and 1Q11 (Figures in thousand pesos) Non Audited 1Q12 1Q11 Revenues % % Rental Revenues 170, % 143, % Tenant reimbursements 20, % 16, % Other Income % % Total Revenues 191, % 159, % Expenses Real Estate Taxes 8, % 8, % Maintenance and Operating expenses 34, % 22, % Insurance 6, % 6, % Total Expenses 49, % 38, % NOI 141, % 121, % 9

10 Pro Forma Revenue Our total pro forma revenue in 1Q12 based on 16 properties amounted to Ps million compared with Ps million in 1Q11. Rental revenues for the period amounted to Ps million, compared with Ps million pro forma rental revenue in 1Q11. This change was primarily due to the lease up of the properties and the increase in Mexican inflation. The rental income coming from the 23 properties acquired from MexFund will be reflected in the second quarter of Pro Forma Net Operating Income Fibra Uno s pro forma Net Operating Income (NOI) for 1Q12, based on 16 properties, amounted to Ps million, compared with pro forma NOI of Ps million in 1Q11. Additional Corporate Information Calculation of Taxable Income Taxable income is calculated on a fiscal basis, and therefore may differ from calculations made on an accounting basis. Particularly, there are two items that need to be considered: a) Depreciation. For tax purposes, depreciation is calculated for 20 years, so every year the constructions are depreciated 5% of the original cost. b) Real portion of interest payments. Taxable income deducts only the real portion of interest payments. Distribution Corresponding to 1Q12 As part of Fibra Uno s commitment to deliver value to its CBFI holders, the Technical Committee approved the proposal to pay a distribution in advance. This distribution amounts to Ps. 156 million corresponding to the period between January 1, 2012 and March 31, The distribution payment equals Ps cents per CBFI, which was calculated based on the 796,325,223 CBFIs in circulation at the date of such approval. 10

11 Of this distribution, Ps cents correspond to return of capital, while Ps cents corresponds to taxable income. Under Mexican law, Fibra Uno must pay out at least 95% of its annual net taxable income to CBFI holders at least once a year. MexFund Acquisition On January 10, 2012, Fibra Uno announced that it had reached an agreement to acquire as many as 23 properties from MexFund in exchange for CBFIs. The due diligence period was set to expire on January 31, 2012, and was later extended upon written consent from both Fibra Uno and MexFund. The due diligence period finalized on March 30, 2012 and the properties will be incorporated into Fibra Uno s portfolio as of April 1 st, The Mexfund properties have a total GLA of approximately 126,466 m2 and an average occupancy rate of 99% as of December 31, 2011, with approximately 77 lease contracts with tenants in various sectors. Eighteen of the properties are retail properties, two are office properties, two are mixed-use properties and one is an industrial property. The properties are located in seven Mexican states, as well as in Mexico City. 11

12 Properties First Year of Operations GLA (m 2 ) % of GLA Occupancy Rate Mar 2011 Number of Contracts Annualized Base Rent (Ps.) Retail 1 Acapulco ,088 3% 100% 1 1,136,150 2 Aguascalientes ,103 4% 100% 2 1,745,762 3 Arboledas % 100% 1 1,306,698 4 Aragón ,232 2% 100% 2 1,638,330 5 Cofre de Perote % 100% 1 634,799 6 Del Valle % 100% 1 471,489 7 Edison % 100% 1 511,902 8 Mexicali % 100% 1 470,415 9 Miguel Angel % 100% 1 565, Monterrey % 100% 1 608, Naucalpan ,341 2% 100% 1 1,880, Olivar de los Padres ,993 3% 100% 3 2,745, Pitic City Center ,425 10% 94% 27 16,651, Terraza Pedregal ,789 5% 100% 13 15,528, Santa Fe % 100% 1 2,330, Tijuana % 100% 1 1,235, Tláhuac % 100% 1 471, Zapopan ,179 32% 100% 1 44,807,214 - Industrial Hermosillo ,958 21% 100% 1 812,524 Office 20 Reforma ,505 5% 100% 1 1,098, Yucatán ,761 5% 100% 1 5,316,000 Mixed Use 22 Alameda ,932 3% 83% 4 4,542, Leones ,878 2% 92% 5 5,299,718 TOTAL 75, % 99% ,810,313 SUBTOTAL RETAIL 48,824 64% 99% 59 94,740,798 SUBTOTAL INDUSTRIAL 15,958 21% 100% 1 812,524 SUBTOTAL OFFICE 7,266 10% 100% 2 6,414,694 SUBTOTAL MIXED USE 3,810 5% 86% 9 9,842,298 Second Offering of CBFIs On March , Fibra Uno announced a primary placement of Real Estate Trust Certificates (CBFIs) for an amount of $8,876,562,500 Mexican Pesos, including 12

13 $1,157,812,500 Mexican Pesos corresponding to the overallotment option. The offering price per CBFI was $23.75 Mexican pesos, and 373,750,000 CBFIs were issued, including 48,750,000 CBFIs corresponding to the overallotment option. The new offer represented 46.9% of the Trust s outstanding certificates at the time of the issuance. Casa de Bolsa Santander acted as the Global Coordinator and Casa de Bolsa BBVA Bancomer acted as the Joint Global Coordinator for the domestic offering while Casa de Bolsa Credit Suisse acted as the Joint Global Coordinator for the international offering. Protego Casa de Bolsa was the book runner in Mexico. The proceeds of the offering will be used to add properties to its existing portfolio with the aim of adding shareholders value and increasing the value of the Trust. Fibra Uno will use a maximum of 33% of the offer to acquire additional properties from related parties, a maximum of 33% to acquire properties that are undeveloped or in the process of being developed, and the remainder to acquire additional properties that are stabilized or in the process of being stabilized from non-related parties. Fibra Uno has identified a pipeline of potential acquisitions in various stages of development and leasing, comprised of portfolios and individual properties, from which Fibra Uno will seek to purchase those that best meet its acquisition criteria and enhance its current portfolio. The Trust will also use another portion of the funds to finance future growth. IFRS Accounting Starting the first quarter of 2012, Fibra Uno will present its unaudited financial results in IFRS following the requirement issued by the CNBV in January All of the consolidated financial information presented in the current report was converted from Mexican GAAP into IFRS to fully comply with CNBV regulations. Letter of Intent to Purchase Banco Santander Mexico Properties On April 24, 2012 Fiba Uno announced that it signed a Letter of Intent with Banco Santander (México) S.A., in which both institutions mutually agreed upon the terms and conditions for Deutsche Bank México, S.A. Institución de Banca Múltiple, División Fiduciaria as fiduciary of the Trust F/1401 (Fibra Uno), to acquire approximately 220 properties from Banco Santander (México) and immediately lease the properties back to the bank for a 20-year period. The terms and conditions of the Letter of Intent have been 13

14 approved by Fibra Uno s Committees and Board members, and have yet to be approved by Banco Santander (México). Additionally, the transaction is still subject to the approval of diverse conditions, among which is the approval notification by the Federal Competition Commission (Comisión Federal de Competencia). Note on Forward-Looking Statements This report may contain certain forward-looking statements and information relating to the Trust that reflect the current views and/or expectations of the Trust and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like believe, anticipate, expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Trust. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Trust undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 14

15 FINANCIAL TABLES INCOME STATEMENT Revenues FIBRA UNO Trust F/1401 Deustche Bank Mexico SA Institucion de Banca Multiple Non-Consolidated (Condensed) Income Statement from January 1, 2011 to March 31, 2012 and March 18 to 31, 2011 (Figures in pesos) Rental Revenues $ 177,573, $ 12,798, Tenant Reimbursements $ 20,480, $ 617, Other Income $ 372, Total Revenues $ 198,426, $ 13,415, Administrative Expenses $ 50,121, $ 617, Depreciation and Amortization $ 27,237, Total Expenses $ 77,358, $ 617, Operating Income $ 121,067, $ 12,798, Financial Products $ 9,239, $ 2,441, Paid Commissions $ (15,223,189.00) $ (232.00) Comprehensive Financial Cost $ (5,983,676.00) $ 2,441, Net Income before Distributions $ 115,084, Distribution to holders $ (86,275,077.00) - Net Income After Distribution $ 28,808, $ 15,239,

16 BALANCE SHEET ASSETS Current Assets Cash FIBRA UNO Trust F/1401 Deustche Bank México SA Institución de Banca Múltiple Non-Consolidated (Consolidated) Balance Sheet as of March 31, 2012 and Dec. 31, 2011 (Figures in pesos) Mar dic Cash Equivalents $ 7,347,145, $ 257,071, Accounts Receivable $ 75,015, $ 68,881, Advanced Payments $ 331, $ 471,634, Refundable tax $ 516,713, $ 1,814, Current Assets $ 7,939,205, $ 799,254, Contribution Portfolio $ 11,205,471, $ 11,027,202, Subsidiaries $ 1,000, $ 1,000, Fees on loans $ 20,170, $ 11,481, Property taxes $ 3,109, Pre-paid insurance $ 3,135, $ 5,366, $ 11,232,887, $ 11,405,050, TOTAL ASSETS $ 19,172,092, $ 11,844,304, LIABILITIES Short term liabilities: Suppliers $ 47,789, $ 50,169, Creditors $ 184,172, $ 172,450, Short term debt $ 21,202, $ 20,789, Long term liabilities: $ 253,164, $ 243,410, Long term debt $ 845,669, $ 831,299, Deposits in guarantee $ 38,306, $ 38,306, Subsidiaries $ 1,000, $ 1,000, $ 884,975, $ 870,605, TOTAL LIABILITIES $ 1,138,140, $ 1,114,015, Shareholders' equity Initial shareholders' equity $ 1, $ 1, Issued shareholders' equity $ 15,150,792, $ 7,875,937, Other reserves $ 2,624,416, $ 2,624,416, Result for the period $ 258,743, $ 229,934, Total shareholders equity $ 18,033,952, $ 10,730,289, TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 19,172,092, $ 11,844,304,

17 CASH FLOW Fibra Uno Trust F/1401 de Deutsche Bank México, S. A. Institución de Banca Múltiple Non-Consolidated (Condensed) Cash flow Statement from January 1 to March 31, 2012, and March 18 to 31, 2011 (Figures in pesos) Operations: Result for the period $ 28,808,976 $ 15,239,724 Depreciation for the period $ 30,819,906 - $ 59,628,882 $ 15,239,724 Increase in Accounts receivable and payable - net $ (28,594,583) $ (12,739,789) Increase in Refundable taxes $ (45,078,462) $ (36,826,402) Increase in deposits in guarantee - $ 20,671,310 Net cash flow from operations $ (14,044,163) $ (13,655,157) Investment activities: Subsidiaries $ 1,000,000 Expenses associated with the CBFIs issuance $ 434,168,439 Expenses associated with bank liabilities $ 11,428,992 Property taxes $ 3,719,820 Contribution portfolio $ 201,763,332 $ 4,396,451,198 Net cash flow from investments $ 651,080,583 $ 4,397,451,198 Financing activities: Initial shareholders' equity and CBFIs issuance $ 7,718,750,000 $ 7,266,787,455 Creditors for property acquisitions $ 178,110,485 - Mortgage creditors $ 14,783,059 - Distribution payments and return of capital $ (155,883,840) Net cash for from financing activities $ 7,755,347,039 $ 7,266,787,455 Increase (net cash reduction) $ 7,090,222,792 $ 2,855,681,100 Cash flow at start of the year $ 256,923,163 - Net cash flow balance $ 7,347,145,455 $ 2,855,681,100 17

18 About Fibra Uno Fibra Uno is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of commercial real estate in Mexico, including industrial, retail, office, mixed-use and other properties. Our objective is to return value to the holders of our CBFIs through distribution of our net taxable income. We intend to selectively assemble a diversified portfolio of high-quality, well-located, income-producing commercial properties in Mexico. The Trust began trading on the Mexican stock exchange on March 18, Currently, it has 18 properties in central and southern Mexico, with an approximate GLA of 746,094 square meters. The 23 properties acquired from Mexfund will be incorporated as of April 1 st, On March 22, 2012, the Trust launched a primary offer for 373,750,000 CBFIs (including an overallotment option of 48,750,000 CBFIs) which represented 46.9% of the Trust s outstanding certificates at the time of the offering. Long-term, Fibra Uno has a growing model in which it plans to buy and develop properties and lease them as a source of recurring, reliable income. Under Mexican law, at least 70% of a Fibra s assets must be invested in or derived from real estate, among other requirements. In addition, a Fibra must also distribute at least 95% of its net taxable income to investors at least once a year. This, combined with the attractive fundamentals of Mexico s real-estate market and a seasoned management team, make Fibra Uno a unique and compelling investment story. Fibra Uno is an internally managed by F1 Management, S.C. and externally advised by Fibra Uno Administracion S.A. de C.V., a Mexican real estate operator with a management with more than 30 years of experience in the Mexican real estate market. Fibra Uno s IPO was a major step forward for Mexico s real estate industry, offering investors new sources of returns while providing developers with a rich source of financing. Fibra Uno seeks to increase its portfolio, return income and create value for its investors and contribute to the development of this key sector. 18

19 Conference Call Details Fibra Uno will host a conference call to discuss 1Q12 and give an update on the business. Date: Friday April 27, 2012 Time: 12pm ET/ 11am Mexico City Speakers: André El-Mann, CEO, Fibra Uno Javier Elizalde, CFO, Fibra Uno Isidoro Attié, Executive Vice President, Fibra Uno Dial-in (U.S.): Dial-in (Mexico): Investor Relations Contacts In Mexico City: In New York: Javier Elizalde Lucia Domville Tel: +52(55) Tel: +1 (646) jelizalde@fibrauno.mx fibrauno@grayling.com 19